Posted on 05/27/2011 5:05:18 AM PDT by SeekAndFind
A prolonged drought in China could hit grains output in key growing regions, further squeezing global supplies and putting upward pressure on prices, but plentiful domestic wheat stocks will act as a cushion and keep import volumes low.
Analysts are closely watching the weather in China, warning any further supply shocks in the grain markets would fuel a further rally in U.S. corn and wheat futures, already stoked by harsh crop weather in the United States and Europe.
"Parts of China have been too dry and if we did see crop failures in that part of the world they are going to look to the global market for supplies," said Luke Mathews, a commodity strategist with Commonwealth Bank of Australia in Sydney.
"They are going to be looking to North America and Europe and there is significant amount of concern whether those particular countries will be able to satisfy those needs."
Chicago Board of Trade corn has climbed 80 percent since the start of May last year, while wheat has risen around 50 percent. Last week alone corn and wheat jumped more than 10 percent on expectations of a global squeeze in supplies.
CROP CONCERNS & TIGHT GLOBAL SUPPLIES
Timely corn seeding is crucial for optimal yields needed to replenish U.S. supplies that are projected at the lowest level in 15 years amid strong demand from livestock feeders, ethanol makers and exporters.
About 80 percent of the U.S. corn crop has been planted, according to the U.S. Agriculture Department, but showers this week are expected to bring the final corn seedings to a standstill.
(Excerpt) Read more at reuters.com ...
Yes, those countries will be able to "satisfy those needs". The only question is, at what price?
Gold, silver, oil, cotton, these commodities go up and down. Food and water are the ultimate commodities. Without them, there is no demand for anything else because your consumers are dead. This is why government subsidies to burn corn to fuel motor transport is insane.
I thought I read reports last year where they could control the weather, seed clouds to make it rain.
CENTRAL MARKET CONTROL FAIL...
Obama will have no problem coaxing Congress to feed China.
I have been told, in no uncertain terms on Free Republic, that it is tin foil hat material to claim that the globe is going to suffer a serious food shortage - famine.
Obama blew up levees and flooded a lot of farm land in the US as if the weather and using food for fuel was not bad enough in shrinking our grain supply. Texas cattle has been ravished with fires. Obama has set on a mission to run organic farmers out of business. Russia and China have droughts and China is in double trouble because their food growing is centrally planned. We usually feed Africa. Africa is going to suffer.
In the world “inter-dependence” market the globalist elite have created, if Obama’s continues to crash the dollar, Americans won’t be able to afford the food we usually import. Food stamps won’t keep up with the cost increases and we have 40 million people on food stamps now. It’s going to be a bad time. People on a fixed or low income should have stocked up on food before now but now is better than later.
Al Reuters is now into tin foil hat conspiracies? Who knew!
I don’t know...Congress usually feeds Africa. The Congressional Black Caucas may have something to say about that! The turth is people are going to suffer famine because the food shortage is real in the US, China and Russia.
As long as it involves feeding foreigners before they worry about Americans (we have 40 million on food stamps in the Obamaeconomy) we can be sure our citizens of the world in DC will come through for their fellow citizens elsewhere.
>>People on a fixed or low income should have stocked up on food before now but now is better than later.<<
The people I’m concerned about are my elderly neighbors. Just for numbers, say they’re used to living on $1000 a month. Then inflation catches on and the $1000 isn’t enough anymore. Well being who they are, the true conservatives, they tend to cut back on everything they shouldn’t food, medicine, heating or cooling the home. I am forever coaxing my elderly neighbors to take a couple of hundred more out of their bank accounts or to keep the heat turned on at night. These aren’t poor folks mind you, they have the money but after a lifetime of saving it they don’t want to spend it.
CAn we stop wasting our grain as ethanol for cars already?
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